What is Crypto Broker?

A crypto broker serves as a vital bridge between individuals and the world of cryptocurrencies. It's essentially a dedicated online platform or service that facilitates the process of buying, selling, and trading digital currencies.

Crypto brokers also frequently extend their services to encompass additional functionalities. One of the more noteworthy functionalities of some crypto brokers is their integration of social trading. This feature introduces a social networking dimension to cryptocurrency trading.

It enables users to follow and interact with experienced traders within the platform learning from them or even replicating successful trading approaches. For instance, platforms like eToro excel in this regard, allowing users to automatically mirror the trades of the traders they follow.

Now, note that crypto brokers are often mistaken for crypto exchanges. While they are similar, they differ in their approach to cryptocurrency trading. A broker offers a simplified and user-friendly experience, acting as an intermediary between the trader and the crypto market. It sets its own prices, usually has a smaller choice of available crypto assets, more additional features, and higher fees.

A crypto exchange, on the other hand, functions as a marketplace where users trade directly with each other, offering a wide range of cryptocurrencies and allowing users to set their own prices based on market dynamics. Besides, crypto exchanges usually have lower fees than crypto brokerages.

eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. The presented trading history is less than 5 complete years and may not suffice as basis for investment decisions.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

eToro USA LLC does not offer CFDs and makes no representation, and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity-specific information about eToro.